Gaming products and services provider Light & Wonder (NASDAQ:LNW) will be announcing earnings results this Wednesday afternoon. Here’s what you need to know.
Light & Wonder missed analysts’ revenue expectations by 4.3% last quarter, reporting revenues of $774 million, up 2.4% year on year. It was a softer quarter for the company, with a miss of analysts’ Gaming revenue estimates and a significant miss of analysts’ EPS estimates.
Is Light & Wonder a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Light & Wonder’s revenue to grow 3.4% year on year to $846.1 million, slowing from the 11.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.40 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Light & Wonder has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Light & Wonder’s peers in the gaming solutions segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Rush Street Interactive delivered year-on-year revenue growth of 22.2%, beating analysts’ expectations by 7.6%, and Churchill Downs reported revenues up 4.9%, topping estimates by 1.4%. Rush Street Interactive traded up 25.7% following the results while Churchill Downs was also up 4.1%.
Read our full analysis of Rush Street Interactive’s results here and Churchill Downs’s results here.
There has been positive sentiment among investors in the gaming solutions segment, with share prices up 2.5% on average over the last month. Light & Wonder is down 4.5% during the same time and is heading into earnings with an average analyst price target of $112.84 (compared to the current share price of $94.38).
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